Published on 3/18/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $102,000 contingent income barrier autocalls with memory on Nasdaq, Russell
By Kiku Steinfeld
Chicago, March 20 – HSBC USA Inc. priced $102,000 of autocallable contingent income barrier notes with memory coupon due Jan. 5, 2024 linked to the least performing of the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 14.25% if each index closes at or above its coupon trigger level, 80% of its initial level, on the observation date for that period, plus any previously unpaid coupon.
The notes will be called at par plus the coupon if each index closes at or above its initial level on any monthly call observation date after six months.
If the notes are not called and each index finishes at or above its 80% barrier value, the payout at maturity will be par plus the final coupon. Otherwise, investors will be fully exposed to the decline of the least-performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes with memory coupon
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| Underlying indexes: | Nasdaq-100 and Russell 2000
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| Amount: | $102,000
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| Maturity: | Jan. 5, 2024
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| Coupon: | 14.25% per year, payable monthly if each index closes at or above coupon trigger on observation date for that period, plus any previously unpaid coupon
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above barrier level, par plus final coupon; otherwise, full exposure to decline of least-performing index
|
| Call: | At par plus coupon if each index closes at or above initial level on any monthly call observation date after six months
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| Initial levels: | 12,030.06 for Nasdaq, 1,886.577 for Russell
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| Coupon triggers: | 9,624.048 for Nasdaq, 1,509.2616 for Russell, 80% of initial levels
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| Barrier levels: | 80% of initial levels
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| Pricing date: | Nov. 30, 2022
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| Settlement date: | Dec. 5, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0%
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| Cusip: | 40441XUF5
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